ACP as a source of information
Source: La República – National
Date: March 30
Headline: Five economic effects left by the pandemic
With the decrease in the benchmark interest rate, from 4.251% to 3.751%, the Bank of the Republic seeks to provide greater liquidity to the Colombian economic system, which is already feeling the impact of falling oil prices and the rapid spread of Covid-19, and whose effects are as complex as they are diverse. (…) Lower oil income. For every dollar that the price of a barrel of oil falls per year, the country stops receiving between 1.3 trillion and 1.4 trillion, according to the ACP and Campetrol. Thus, in the event that the barrel continues to be priced at US$25, income would fall to 12 trillion in 2020, as accounts pointed to an average barrel of US$60. Increase in deficits. Although analysts estimate that the decrease in oil revenues will materialize in 2021, they warn of implications from a fiscal point of view starting this year. Furthermore, according to Fedesarrollo, the current scenario would push the current account deficit to 6.21% of GDP, due to the slowdown in trade. Responded in:larepublica.co (March 30).
Source: La FM Radio – National
Date: March 30
Source: lafm.com.co – National
Date: March 30
Headline: With falling prices, there is no barrel of oil that is profitable: Francisco Lloreda
Francisco Lloreda, president of the Colombian Petroleum Association, spoke on La FM about the crisis currently facing the oil industry and the effects it will have on the country. Lloreda indicated that at this moment all economic sectors are being seriously affected by the economic recession and at this moment the hydrocarbons sector is facing a drop in prices not seen in 17 years. “This is very delicate because there is no barrel of oil that is profitable under these circumstances, and this is causing companies to consider closing fields. It is possible that 20 or 25 may close soon.” (…) Should fracking be postponed? Lloreda assured that fracking should not be postponed for any reason and stated that the pilots for the implementation of this procedure can be financed with budgets designated by the companies.
Source: lavozdelyopal.co – Regional
Date: March 30
Headline: Hydrocarbon sector companies donate protective equipment for COVID-19 management in Casanare
The donation of protective equipment includes sealed hooded suits, caps, N95 masks with filters, and gloves. Personal Protective Equipment (PPE) to control and reduce the risks of COVID-19 spread was received by the Public Health Surveillance team of the Department and the managers of Red Salud Casanare and the Regional Hospital (HORO), Leider Yesid Daza and Ronald Roa, respectively, as a result of the efforts made by Governor Salomón Sanabria before the Colombian Petroleum Association (ACP), representing the hydrocarbons sector, in its commitment to managing and mitigating the health emergency facing the country.
Source: prensalibrecasanare.com – Regional
Date: March 30
The Colombian Petroleum Association (ACP) delivered personal protective equipment (PPE) to reduce the risks of COVID-19 transmission to the Public Health Surveillance team of the Department and the managers of Red Salud Casanare and the Regional Hospital of Orinoquia. The donation includes sealed hooded suits, caps, N95 masks with filters, and gloves. The supplies received by the managers of the ESE's will be distributed among the healthcare personnel responsible for managing positive patients or those with associated respiratory symptoms, with the aim of preventing the transmission of the virus, given the degree of exposure and direct contact related to their functions.
Source: El País – Regional
Author: Francisco José Lloreda Mera
Date: March 29
Headline: It will not be the exception
Covering the sun with our hands is not the solution. Nor is it to let ourselves be carried away by anxiety. We knew it was going to happen: that the number of infections and deaths would increase and that we would start to feel the effects of the economic recession. But one thing is to know that something is going to happen and another is for it to happen. More so, when it is not clear how the pandemic and the economic and social crisis will evolve; we don't even know that two weeks ahead. Epidemics are not new, nor are economic crises. But their combination, in an interconnected and interdependent world, generates an enormous impact. Not because of the number of deaths - compared to other pathologies, those from Covid-19 are still low - but because of its rapid territorial expansion and the effect on people's daily lives. And because of its inevitable economic and social consequences, which are already beginning to be perceived. Responded in:elpais.com.co (March 29).
Source: sostenibilidad.semana.com – National
Date: March 28
Headline: The ghost of fracking that haunts the Magdalena Medio
Fear, distrust, and ignorance reign among the inhabitants of Barrancabermeja and Puerto Wilches, in Santander, and San Martín, in Cesar, where the Integral Pilot Research Projects would be developed. These are territories with a high environmental debt. First delivery of special report. (…) María Fernanda Suárez, Minister of Mines, has stated that the pilot projects are necessary to make a responsible decision, based on scientific knowledge and not on passions. (…) The Colombian Petroleum Association (ACP) points out that in Colombia the average recovery factor is approximately 19%, and around 90% of the 320 producing fields are currently producing in their primary stage, that is, through natural flow and the use of artificial lifting systems (pumps or machines).
Source: prensalibrecasanare.com – Regional
Date: March 28
Within the framework of circular 4007 of 2020, issued by the Ministry of Mines and Energy, and Decree 457 of 2020 from the Presidency of the Republic, which provides instructions for compliance with Mandatory Preventive Isolation and, as a guarantee of the right to life, indicates among the permitted exceptions the circulation of personnel for the supply of hydrocarbons, fuels, liquids, biofuels, natural gas, and liquefied gas. In this regard, the Colombian Petroleum Association (ACP) issued a statement stating that, “for the oil and gas industry, life comes first, which is why it has been characterized by its commitment and rigor with the culture of care and good practices in its operations, to guarantee the health of its workers, contractors, and the communities in the areas of operation.”.
Source: prensalibrecasanare.com – Regional
Date: March 28
Headline: This is how Covid-19 is progressing in Casanare.
The Governor of Casanare, Salomón Sanabria, delivered a report on the progress of actions taken to contain the health emergency due to Covid-19 in Casanare during a press conference on Saturday morning. In the search for possible cases, 292 field investigations have been conducted, 198 were prioritized, and 146 diagnostic tests were carried out, with 48 results already received. (…) Likewise, the Colombian Petroleum Association will support the Covid-19 contingency through the donation of protective supplies for personnel involved in emergency response, the Governor stated.
Source: violetastereo.com – Regional
Date: March 28
Headline: Oil companies are also subject to mandatory preventive isolation.
In a press release, the Colombian Petroleum Association shared the measures that the hydrocarbons industry has taken in response to the Covid-19 pandemic. (…) Within the framework of circular 4007 of 2020, issued by the Ministry of Mines and Energy, and Decree 457 of 2020 from the Presidency of the Republic, which provides instructions for compliance with Mandatory Preventive Isolation and, as a guarantee of the right to life, indicates among the permitted exceptions the circulation of personnel for the supply of hydrocarbons, fuels, liquids, biofuels, natural gas, and liquefied gas, the Colombian Petroleum Association (ACP) informs: 1. For the oil and gas industry, life comes first, which is why it has been characterized by its commitment and rigor with the culture of care and good practices in its operations, to guarantee the health of its workers, contractors, and the communities in the areas of operation.
GREMIO
Source: La República
Date: March 30
Headline: Ecopetrol would not deliver profits in 2021 if oil remains at US$25.
What several economists are calling the “perfect storm,” in which the crisis of international crude oil prices, the fall in stock markets, and the advance of Covid-19 converge, would be the reason why Ecopetrol would not deliver profits in 2021. (…) To achieve these objectives, the company's president, Felipe Bayón, explained that progress is already being made in reducing investments and increasing savings. “Our indicators allow us to be more optimistic. What are we doing? We propose a reduction of US$1.200 million for this year. Against that objective, we have already achieved US$1.300 million. We are ready, and if we need to implement more phases in terms of reduction, we will do so,” he said. (…) In light of this determination, the unions supported this decision, as it was noted that while fracking incurs high production costs, obligations would still not be costly since it is an exploration phase. “The Government, the industry, and the territories must take advantage of this time to advance the baseline lines and start with the meetings prior to the preparation, to begin preparing the operation,” assured Germán Espinosa, president of Campetrol.
Source: Portafolio
Date: March 30
Headline: In the midst of the pandemic, there are opportunities to invest.
The coronavirus is impacting the health of hundreds of thousands of people around the world, but also the global economy, which according to analysts, could enter recession this year. (…) And the action of a high-performing company with good prospects in its sector and in the economy can be punished. Experience shows that a serious, large company with a track record in the market will survive after the crisis, so investing in it is a reasonable option. (…) Graph: Stock performance: Ecopetrol 25,25%.
Source: El Colombiano
Date: March 30
Headline: Four new initiatives in response to the contingency
Bionergy, Cerrejón, Andi del Futuro, and Arroz Diana are also taking actions to address the current situation. The spread of the virus in the country has led the business sector to face difficult days due to decreased consumption and the closure of commercial establishments. However, it has also been a favorable scenario for some companies to take the lead in helping the most needy population in this situation. (…) In Puerto López, Meta, the “El Alcaraván” plant of Bioenergy has served in recent days to produce 7,000 liters of antiseptic alcohol to disinfect surfaces that are expected to be distributed in the Meta region to be better prepared for the health emergency. (…) “We are committed to the health and care of the inhabitants of the department of Meta, which is why as an agro-industry in the region we are sure that this delivery will be of great use for addressing the health emergency we are going through,” said Walfredo Linhares, president of this Ecopetrol subsidiary.
Source: Vanguardia Liberal
Date: March 30
Headline: #WeWillGetThroughThisTogether. By: Sergio Arenas
Santandereanos always forward! Santandereanos not a step back! We managed to unite in a common cause. Save our region! At this moment, personal, religious, economic, or political interests do not matter; proof of this is the alliance achieved between the public and private sectors to combat COVID-19. The time has come to rise in the midst of our arid land, wipe the sweat from our brows, breathe, and consolidate this union to walk towards a horizon of health and prosperity. (…) Fenalco Santander, Hospital Universitario de Santander, Fundación Banco Arquidiocesano de Alimentos, Ecopetrol, PVS Agencia, Y2D, Sena, Gobernación de Santander, Alcaldía de Bucaramanga and the Metropolitan Area, united to address this health emergency that jeopardizes the stability of our people.
Source: El Informador
Date: March 30
Headline: Caribbean populations will benefit from Ecopetrol's investment to face Covid-19
In its first stage, the plan includes resources of $ 26 billion and investments will prioritize humanitarian aid and strengthening health systems in various regions of Colombia. The Ecopetrol Group recently announced a package of investments for strengthening the health system, which includes the provision of personal protective equipment, field hospitals, medical equipment, humanitarian aid, and its commitment to innovation and development initiatives to address the health emergency facing the country. Ecopetrol and its subsidiaries Cenit, Ocensa, ODL, ODC, Bicentenario, Refinería de Cartagena, Hocol, Esenttia, and Bioenergy designed initiatives for nearly $26 billion to address the needs prioritized by national, regional, and local authorities in the areas of influence of the Group's operations.
Source: El Colombiano
Date: March 29
Headline: Economy in quarantine. By: Rafael Nieto Loaiza
Coronavirus, again. It is inevitable. Nothing has been more serious, global, disruptive, since World War II. It has changed everyday life, routine, what is “normal.” And not only because of its consequences in terms of public health and the millions of infected, but also, and perhaps equally importantly, because of its impacts on the economy. On Friday, the director of the IMF announced that “we have entered a recession.” The pandemic has also brought a huge drop in oil consumption which, coupled with the confrontation between Saudi Arabia and Russia, has resulted in a brutal collapse in price. On Saturday, the Brent barrel, the reference for Colombia, was quoted at US$27.87. But we are paid several dollars less. The 2020 budget was made with a price of US$67.5. The production cost of Ecopetrol is just over US$30 per barrel, to which transportation and other expenses must be added.
Source: Vanguardia Liberal
Date: March 29
Headline: Ecopetrol Aid
Ecopetrol and its subsidiaries designed initiatives for nearly $26,000 million to address the needs prioritized by national, regional, and local authorities in the areas of influence of the Group's operations. The investment package is for strengthening the health system, which includes the provision of personal protective equipment, field hospitals, medical equipment, and humanitarian aid, among others.
Source: eleconomistaamerica.co
Date: March 29
Headline: Grupo Ecopetrol announces investment package to face COVID-19
The Grupo Ecopetrol announced an investment package for strengthening the health system, which includes the provision of personal protective equipment, field hospitals, medical equipment, humanitarian aid, and its commitment to innovation and development initiatives to address the health emergency facing the country. Ecopetrol and its subsidiaries Cenit, Ocensa, ODL, ODC, Bicentenario, Cartagena Refinery, Hocol, Esenttia, and Bioenergy designed initiatives for nearly $26 billion to address the needs prioritized by national, regional, and local authorities in the areas of influence of the Group's operations. (…) The investments will be made in Magdalena Medio, Norte de Santander, Arauca, Casanare, Meta, Neiva, Putumayo, and the Caribbean, with an emphasis on Cartagena, Santa Marta, and Coveñas.
Topics
Source: La República
Date: March 30
Headline: Despite the reduction in rates, analysts expect the dollar at $4,050
The Representative Market Rate (TRM) that will apply today is $4,042.80, a figure to which, according to a survey conducted by LR with different analysts, Colombians will have to get used to because it will remain very close to that level during this week, as the dollar would be around an average of $4,050. (…) WTI oil will remain close to US$20. The measurement made by LR showed that analysts expect WTI crude prices to continue averaging US$21.66. In this regard, Raúl Moreno, market analyst at Global Securities, warned that “there is considerable concern about the weakness in oil prices, including Brent, and as long as this environment persists, it cannot be ruled out that they could trade below US$20, which would generate greater outflow of dollars from the country and, therefore, there could be new highs in the price of the dollar.”.
Source: La República
Date: March 30
Headline: For Fitch, banking in Peru, Chile, and Colombia will have to demonstrate strength
Due to the current outlook resulting from the expansion of Covid-19 and the measures adopted by governments in the region, Fitch Ratings revised the banking sector outlook for 2020 from stable to negative in Peru and Colombia, while maintaining the negative outlook in Chile. (…) Fitch Ratings also highlighted that this downward revision is not solely due to the impact of Covid-19, but also to the sharp decline in commodity prices, particularly oil and copper, as this will test the financial profiles of banks in Colombia, Chile, and Peru. It should be noted that this drop in crude prices has an impact “both on the oil sector and on the Colombian economy, since this segment represents an important source in terms of fiscal revenues through income and dividends, royalties, foreign exchange flow from exports; and foreign direct investment. This provides macroeconomic and fiscal stability,” said Germán Espinosa, executive president of Campetrol.
Source: La República
Date: March 30
Headline: They ask that Russia and Arabia end the war
Because Russia said it would not accept the crude production cut proposed by Saudi Arabia, oil has recorded historic drops in its prices in recent weeks, which has put some countries like Colombia in a tight spot as part of their annual accounts is based on the price of this commodity. This situation has led major oil companies worldwide to record massive losses and former OPEC+ partners to plead for “mercy as the economic damage worsens. For example, Nigeria openly wonders how much more it can withstand the brutal global competition for market share,” according to information from Bloomberg. (…) According to data from the American company, oil demand has fallen by approximately 20% so far this year. This, combined with increased production by Saudi Arabia, makes the stabilization of the oil market seem distant.
Source: La República
Date: March 30
Headline: Refineries close because there is no demand
Singapore. On Friday, the first closures of oil refineries in India and Europe were announced, as crude processing plummets due to the collapse of demand as a result of quarantines and lockdowns around the world. API of Italy said it would temporarily close operations at its Ancona refinery, which has a capacity of 85,000 barrels per day (bpd).
Source: Portafolio
Date: March 30
Headline: 2008 versus 2020. By: Francisco Miranda Hamburger
The last global economic crisis, before the coronavirus, was in 2008. Triggered by the bursting of the housing bubble in the United States, this crisis had a financial origin and “infected” the rest of the global economies. (…) In the specific case of Colombia, the mining-energy boom between 2010 and 2012, among other factors, helped the national economy mitigate the internal blow of the 2008 financial crisis. Today, the collapse of oil prices raises doubts about whether the country has such an important cushion this time.
Source: Portafolio
Date: March 30
Headline: S&P downgrades the outlook for nine Colombian companies
The crisis caused by the covid-19 pandemic is lowering the ratings of several Colombian companies by the rating agencies. (…) “This could happen if external negative shocks harm the national GDP growth outlook, thus contributing to worsening public finances, or if they generate additional risks to Colombia's external liquidity,” the note highlights. The recent drop in oil prices, along with the global negative impact of covid, has weakened the country's external profile, resulting from lower export revenues and a wider current account deficit, raising concerns about its economic growth expectations.
Source: Portafolio
Date: March 30
Headline: Will the coronavirus create a crisis worse than in 2008?
The financial crisis that began in 2008 hit the global economy hard, left many of the major powers battered, and, more than 10 years after that episode, several countries still feel the collateral effects of its passage. (…) And at this moment, indicators are emerging that were not seen in 2008. For example, drops of 25% in a single day in oil prices or more than 11% in the Dow Jones are unprecedented since the ‘Black Monday‘ of 1987 and the Gulf War. Moreover, it is estimated that global stocks lost about US$27.6 trillion at a minimum, a figure higher than in 2008, according to data from BNP Paribas.
Source: El Colombiano
Date: March 30
Headline: The dollar has been 396.4 pesos more expensive this year
Last year, the dollar made headlines because in November it surpassed the barrier of 3,500 pesos for the first time. However, the average Representative Market Rate of this currency in Colombia also exceeds this figure so far this year; in fact, its average value has been 3,531 pesos as of today, according to the historical rates from the Financial Superintendency. (…) “This volatility was born when Saudi Arabia and Russia left the production pact and began to open the
Institutional
Source: El Tiempo
Date: March 29
Headline: ‘Fracking’: key test reached the Council of State
“As demonstrated by the recently compiled scientific, medical, and engineering literature, it is not possible to do ‘responsible fracking’ because there are too many associated risks that the technique cannot control or guarantee.” (…) Regarding this activity, the Government has insisted that it is necessary for the country's energy security, and the Minister of Mines has stated that it can be done safely. (…) Experts also compared the 12 blocks of unconventional deposits (YNC) assigned by the National Hydrocarbons Agency as of July 2019 and found that in some areas they overlap with strategic ecosystems such as the tropical dry forest, humid forest, and 32,632 hectares of wetlands.
Source: sostenibilidad.semana.com
Date: March 29
Headline: Fracking: the invisible community of Terraplén in Puerto Wilches
Poverty in this rural area of that municipality in Santander cannot be hidden. The farmers are afraid of what will happen to their water sources and the effects that may arise from the multimillion-dollar investment in the exploration of this technique. Second installment of special report. (…) Very close to there, some pilot research projects for fracking are planned, just like in the municipality of San Martín, in the department of Cesar, known for its constant protests against this technique for oil extraction. (…) The Ministry of Mines, meanwhile, assures that Puerto Wilches has benefited from oil activity and that its historical royalties from 2012-2020 amount to nearly 39 billion pesos (about 9.5 million dollars), which have allowed it to co-finance investment projects of over 56 billion pesos (about 13.5 million dollars), mainly in the sectors of transportation, education, as well as sports and recreation.
Source: las2orillas.co
Date: March 29
Headline: «It is not solidarity, it is not generosity; it is fear»
Why has what is being done now never been a sustained state policy aimed at improving the harsh living conditions of the majority of Colombians? The government's latest economic measures to face the crisis (which is just beginning) unleashed by the Coronavirus seem to be the result of a state policy based on social inclusion and respect for civil and human rights. (…) Bold note: the Minister of Mines and Energy, the executives and «scientists» of Ecopetrol, President Iván Duque… All of them and the other defenders of ‘fracking’ in the world and in our country should wash their hands with oil, not with water and soap.
Source: La República
Date: March 28
Headline: Fedispetrol made requests to the Government to relieve retailers
The president of Fedispetrol Colombia, Álvaro Ramón Younes, sent a letter with several requests to the President of the Republic, Iván Duque, and to the Minister of Mines, María Fernanda Suárez. The document refers to a series of requests and recommendations for relief to support the retail sector of hydrocarbon derivatives distribution, which state that they have been highly affected in their accounts by Covid-19. (…) Finally, another urgent support is to extend the deadline of 30 or 60 days to the retail network for payment of the surcharge on gasoline and VAT.
Source: eltiempo.com
Date: March 27
Headline: Service stations demand support to avoid bankruptcy
The sector of service stations that distribute fuels in the country demanded urgent assistance from the Government to allow entrepreneurs to avoid the impending bankruptcy as a consequence of the sharp reduction in the price of gasoline, by 1,200 pesos per gallon since March 16, but also due to a drastic drop in sales. In a letter dated March 26 and sent to President Iván Duque and the Minister of Mines and Energy, María Fernanda Suárez, the president of Fedispetrol, Álvaro Younes, urged the Government to adopt four actions to mitigate the situation of small and medium-sized entrepreneurs dedicated to this activity, and that of their families, which has worsened in recent days.
Colombian Association of Oil and Gas